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Petition for Practitioners
Is this the week we have actually begun to save the endangered species, the Insolvency Practitioner in the UK? I hope so for the debtors, creditors and consumers sake.
Debt solutions are best delivered when debt advisors can professionally represent their client, the consumer, in meaningful negotiations with the creditor to help resolve the financial trouble. This requires a fair, balanced and reasonable tension of power between the debt advisors and creditors to create a fair and level playing field.
In the UK right now, very disturbing marching orders have been sent to Insolvency Practitioners that potentially harm the rights of consumers and deny access to fair and reasonable solutions to resolve problem debt reasonably.
This firestorm began with the issuance of a document titled "Important Changes to TIX Compliant Individual Voluntary Arrangements ("IVA") Fee Structures" and is ongoing now.
Mike Reeves, an avid reader of our UK articles section on Individual Voluntary Arrangements started an online petition with the Prime Minister's office at 10 Downing Street.
The petition reads "We the undersigned petition the Prime Minister to Bring about a fair balance between the rights and responsibilities of consumer debtors and their bank and financial institution creditors, and enable as many people in debt as reasonably possible to have fair access to the full benefits of insolvency legislation by bringing in a) legislation to enforce the Banking Code and b) at least until that is in place, relaxed best practice requirements in relation to the IVA personal insolvency procedure to take account of the bank's present actions."
Mike adds "Banks and consumer credit institutions appear to be ignoring their responsibilities under sections 2 and 14 of the Banking Code by acting unfairly towards people who owe them money and are in financial difficulties. At the same time they are using their concerted power to force those setting up IVAs, arrangements between people in debt and themselves, to act in certain ways which adversely affect those in debt and which in some cases denies those people access to use the legislation. The insolvency legislation is for all of us to use if and when appropriate, and while there may always be some limiting factors over its practical usage those factors should not be dictated by the banks and financial institutions."
All good logical statements that are hard to argue with.
I would urge you and anyone that you know that is a British citizen or resident to visit the online petition link and take a few seconds to register your vote of support.
Sincerely,
Steve Rhode
President
Myvesta Foundation
Today's Top Stories:
The Creditors Guide on How to Build an IVA Factory
I'm having a tough time trying to reconcile the negative comments by creditors and others on the lending side when they slur Insolvency Practitioners by calling them IVA factories. The reason I struggle with it I guess is that creditors seem to be using that term as an insult, but at the same time send out instructions through their agents and engage in actions that prod, ZAPPP!, Insolvency Practitioners to adopt more efficient practices, just like a factory.
Is an Individual Voluntary Arrangement (IVA) a Consumer Privilege or a Right?
I'm not sure that I have any definitive answers to the question but there are certainly some issues that make me wonder why creditors treat people with debt problems as poor dumb bastards, thieves and crooks and then creditors act in concert to prevent good people from access to fair debt solutions like the IVA.
What Do The Latest IVA and Bankruptcy Figures From the Insolvency Service Show Us? It's Not What You Think
The latest round of figures from the Insolvency Service in the UK regarding bankruptcy filings and Individual Voluntary Arrangements (IVA) is surprising. While debt management industry insiders were anticipating a large increase in bankruptcy filings as a result of the lid being tightly held on IVA repayment offer acceptance by creditors, that didn't happen. Let's look at what the reasons for that could be.
Insolvency Practitioners Hit Back at IVA Decree
Angry insolvency practitioners have accused The Insolvency Exchange (TIX) of 'cartel' behaviour after its declaration of the terms under which it would accept individual voluntary arrangements (IVAs).